1. On the Design of Equalizing Grants
- Author
-
William T. Bogart and Jon Erickson
- Subjects
Offset (computer science) ,Public Administration ,Sociology and Political Science ,General purpose ,Public economics ,State (polity) ,Order (exchange) ,Political science ,media_common.quotation_subject ,State government ,media_common ,Tax rate - Abstract
This article considers the design of grants to offset fiscal disparities. We define afiscal disparity as a condition in which towns must levy a different tax rate in order to provide the same level of public services. We consider ways of measuring disparities, as well as ways of allocating grants to alleviate disparities. In order to focus the presentation, we concentrate on lump-sum grants for unrestricted use from a state government to general purpose local governments within that state. We conclude by presenting an example of a grants formula for the state of New Jersey which meets our specifications.
- Published
- 1989